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Agenda of Session
1. Origin of Lean
2. About Lean Management
1. Certified Lean Manager role & responsibility
2. Purpose, Process & People
3. Organizations Struggle in Lean
3. Benefits of Lean
4. Lean External Stories
5. Lean Thinking Principles
1. Value
2. Value Stream
1. Value Stream mapping
2. VSM Symbols
3. Current State Map
4. Prioritize Improvement Opportunities
3. Flow
1. Batch Flow
2. Single piece Flow
4. KANBAN-Pull
5. Improve to Perfection
1. Prefect process requirement
6. Muda overview
7. 8 Wastes
1. Over-production
2. Excess Inventory
3. Unnecessary Processing
4. Unnecessary Motion
5. Defects
6. Waiting
7. Transportation & Conveyance
8. Unutilized Skills [New]
1. Toyota Production System
1. The House of Toyota
2. JIT (Pull, Single piece flow, Takt Time production)
3. JIDOKA (Stop at abnormality, Autonomation)
4. Heijunka (Leveling, Sequencing)
2. 5 S and Visual Management
1. SORT (Seiri)
2. Set in Order (Seiton)
3. Shine(Seiso)
4. Standardize (Seiketsu)
5. Sustain (Shitsuke)
3. 5 Whys (Defect Root Cause Analysis)
4. 8 Quality Management principal
5. Kaizen
6. Mistake Proofing (Poka-Yoke)
7. KANBAN
8. KANO MODAL
9. Theory of Constraints
10. Action Workout (AWO)
11. Culture and Leadership
12. Change Management
1. FMEA (Risk Analysis)
2. Stakeholder Analysis
13. SCORE ( part of Lean thinking Principles)
14. Lean Glossary
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3. 3
Origin of Lean
Lean thinking focuses on non-value- added activities, those activities that occur
in every enterprise but do not add value for the customer. Some of these
activities can be eliminated, and some can be simplified, improved, combined &
so forth.
History of Lean
•Henry Ford spoke about Lean principles, post which Taiichi Ohno implemented
the principles in Toyota.
•TPS became one of the key driving points for Lean Manufacturing, popularized
by James Womack in 1980s.
1937
Toyoda Motor Company Formed (now Toyota)
1943-1978
Taichi Ohno and his autonomous study group created the Toyota
Production System (TPS)
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4. 4
What is Lean Management?
•A Strategy For Maximizing Value to Customers
•The relentless pursuit of the perfect process through
waste elimination
•It’s not one tool or one initiative…
•it’s a mindset!
Every organization must find better ways to address:
• Purpose
• Process
• People
Defining the purpose &
specifying the process for achieving the purpose
by aligning the people touching the process
is the central task of lean management.
Before After
Optimum Centering
Minimum s
USLLSL
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5. 5
Organizations Struggle in Lean
•Purpose is not clearly defined in terms of solving the
customer’s problems or addressing the business need.
(The urgent displaces the important in goal setting.)
• Processes creating value to address the purpose are
not clearly specified and visible to everyone.
• People
Focus on the point they manage (often driven by point
metrics) rather than optimizing the whole value stream.
Lack of technical competence and a scientific method
for improvement – A3 incorporating Plan Do Check Act
(PDCA) – in order to “manage by science.”
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Lean Management: Purpose
•Determine customer purpose.
Hint: In today’s world many high-income customers want
to solve a problem rather than obtain isolated goods and
services; many low-income customers want products
suited to their current needs.
• Address purpose by identifying product-family value
streams for specific customers and making someone
responsible for their performance.
• Ask the responsible person to determine the business
problem, the “gap” between need and current
performance.
Value-stream focus makes it easier to do both.
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Lean Management: Process
•Address the process problem by making someone
responsible for each value stream to:
•Make the current state of the entire process clear to
everyone, including the “purpose gap”.
•Propose a better future state & take responsibility for
implementing it.
•Continuously address emerging problems, as close to the
problem as possible.
• Collaborate to standardize processes across the
organization.(Yokoten.)
• Change performance metrics and personal practices as
necessary to facilitate change and sustain performance
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Lean Management: People
• Engage people at every level:
• Teach them to focus on the work & see the value stream.
• Give them deep technical knowledge and profound
knowledge of process by slowing management rotation.
• Push responsibility for value stream management and
improvement to lowest practical level of line management.
• Introduce metrics which encourage horizontal thinking.
Create frequent problem solving loops between managers
and their bosses and managers and their subordinates.
• Via policy deployment, A3 analysis, and standardized
work with standard management and kaizen.
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Lean Management in Summary
• Purpose – Help customers solve problems by correctly
specifying value so the enterprise can prosper.
• Process – Through lean processes as simple and visible
as possible.
• People – Created by engaging deeply knowledgeable
people in repetitive problem solving & standardization.
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